Development and Empowerment Programs for Communities Surrounding Mining Areas

The Ministry of Energy and Mineral Resources(“Ministry”)has issued Regulation No. 41 of 2016 on the Development and Empowerment of Communities through activities of the  Mineral and Coal Mining Sector(“Regulation 41/2016”).Regulation 41/2016 essentially gives effect to Article 109 and 111 of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Activities, [1] which required further guidelines  to be drawn for the development and empowerment of communities (pengembangan dan pemberdayaan masyarakat– “PPM”) surrounding mining areas. [2] The Guidelines under Regulation 41/2016 encompass provisions that govern the PPM blueprint, master plan, annual program, as well as creating reporting obligations and administrative sanctions for non-compliance.PPM: BlueprintRegulation 41/2016 requires any governor of a province where mining activities take place to draft a blueprint of a PPM that will be implemented in his/her area. Such blueprint must contain, at a minimum, integrated strategic plans and directives for the following objectives: [3]